Early Payment Discount

Scottish & Southern Energy PLC
16 January 2007



SCOTTISH AND SOUTHERN ENERGY
OFFERS CUSTOMERS INCREASED
EARLY PAYMENT DISCOUNT

- £40 REDUCTION ON TYPICAL BILL

Scottish and Southern Energy plc ('SSE') is rewarding customers who pay their
energy bills in good time by increasing its early payment discount.

The discount will now be worth around £40* to the millions of customers who pay
their bills quarterly.


SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric
and Atlantic, is one of just two energy suppliers which rewards its customers in
this way.


The increase in SSE's early payment discount follows the recent announcement by
British Gas of its plan to charge their customers £5 for paying bills late,
which could mean up to £40 a year more for British Gas customers.


Energy Supply Director, Alistair Phillips Davies said: 'All along we've taken a
responsible approach to our pricing, which is why typical dual-fuel prices
charged by our largest competitor are around 16% higher than ours. This is even
before we add our prompt payment discount, which takes the difference to 21%.


'We want to reward our customers for doing the right thing, not penalise them
for doing the wrong thing. Our customers could receive an average of £40 off
their bills just for paying them promptly.


'This is the first of a number of measures we will be introducing in 2007 to
start making energy bills better. Although we are already the lowest cost
supplier across the country, we expect these measures to include a reduction in
prices later this year.'


- ENDS -


* Based on a 4.3% early payment discount applied to SSE's average standard
quarterly dual fuel bill across all Great Britain areas, of £962. The equivalent
bill with British Gas would be £1,120 - more than 16% higher. The average bill
is based on 20,500 kWh of gas and 3.300kWh of electricity.


Notes to Editors:


   •The early payment discount is available to SSE's 2.5 million customers
    who pay their bill quarterly on demand, and do so within 10 days of
    receiving it. The increased discount will be 4.3% off the customer's total
    quarterly bill including VAT.


   •Customers are eligible for even larger discounts if they pay their bills
    by Direct Debit: 5% off the unit price for variable direct debit customers
    and 6% off the unit price for monthly direct debit customers.


   •Based on the average standard quarterly price across Great Britain, SSE
    continues to offer the lowest prices in the industry for gas, and for gas
    and electricity combined (dual-fuel). This is based on annual consumption of
    20,500kWh of gas and 3,300kWh of electricity. Prices include VAT.


   •SSE supplies 7.5 million customers through its retail brands, Southern
    Electric, SWALEC, Scottish Hydro Electric and Atlantic. It transmits and
    distributes electricity to over 3.6 million customers in central southern
    England and the north of Scotland.


SSE Press Office Contact:           0870 900 0410

Justyn Smith and Sharron Miller McKenzie



                     This information is provided by RNS
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